the shellshocked gop. cheryl: melissa: time for stocks. let's head to the floor of the stock exchange with nicole petallides standing by. it is down 46 points. nicole: was a rough day on wall street for so many who have 401(k)s and iras and no one wants to see such a loss the we're tacking on those losses even further with the dow down 47 points and that in percentage terms just over 1-third of 1% and you have seen selling across the board and we have got some economic news like weekly jobless claims, the trade deficit came in, unexpectedly narrow but the big picture, pressure remains in the s&p 500 which is the 1400 mark and mark newton, i was chatting with him, these are key support levels, looking at 1380. if you break 1380 you can look

at 1360 and you have got to find that support level. take a look at j. p. morgan -- jpmorgan and financials giving it ago. week same-store sales and first-time we have seen it in nine years. >> more economists coming around the u.s. economy in recession. economists looking at recession and that is the key, lackluster growth. reports making rounds on wall street, indicating we could see more slowing around the bend, with more on what they're hearing here is a liz macdonald with the bottom line. if you listen to these economists everyone is resetting their expectations. >> seeing four of ten, only 4 of 10 have been their sales estimates. that is not a good number. and other data from the same

louis fed, very controversial study. they are -- their preliminary data is flashing fire engine red alarms and a recession is around the corner. the second or third quarter, a third of the gdp growth came from government spending on things like defense the we're seeing 227 stocks in correction mode, apple, google and microsoft and we are seeing a big indicator cutting signals, the number of companies that are cutting -- we are seeing a big tax increase of obamacare, in the fiscal cliff, but when you look at data from the s&p you see the u.s. economy entering recession and you see that spike and the number of companies cutting dividends in 2009 at the height of the recession and trending along those lines so you see the number of companies cutting their dividendss as well

and on top of that you see 58% of the oecd countries already so possible fourth quarter contraction, not a good sign. lori: economists -- [talking over each other] >> waiting for the official stamp. melissa: we are hearing, the first trust advisers, rising, but the big national bureau of economic research on average taking a year to call a recession. so we could be finding out down the road. cheryl: who better to get melissa: who better to get reaction than the ceo of the american trucking association who joins us exclusively. what do you think? is there signs of recession had or has already begun? >> we think we will slog through

slow and economic times, and the storm in the northeast will be a drain this quarter, but a lot of rebuilding will take place so that alone will perhaps add a little uptake in the next quarter. it is anyone's guess but we expect flat economic activity for the next two or three quarters. melissa: the types of trucks you see on the road indicate specific thing going on in the economy. give us some details. >> the unfortunate aspect of a storm like we had in the northeast is you are going to have a lot of activity in the flatbeds segment of our industry, because a lot of people will be moving a lot of construction type materials. we have to restock every grocery store shelf with anything perishable so a lot of refrigerated units are goong to move food into the grocery store. give a specific example, automobiles, there may be as many as 15,000 automobiles at the port of newark that are

basically salvage, new cars that were caught in the flooding. those will be moved out and dispose of and we have to manufacture import into the u.s. to the porch and move by auto transport cars to dealerships and that is not to mention all the cars damaged in the flooding itself and have to be simply replaced by consumers who no longer have a viable automobile. melissa: what about fuel? that is a problem in the northeast and something you depend on. >> fuel prices are high everywhere. melissa: what about availability? >> we are getting fuel to every place we can be physically allowed to move fuel. the first need is to make sure utility vehicles have fueled an emergency responders have fuel, for the most part those needs are being met. meanwhile is going to take some time i will bring everyone's

filling station online because some are not accessible and even if they are, they don't have power to pump fuel. melissa: did you feel things were picking up? >> i don't know that i've felt things were picking up. we felt freight levels were pretty well flat for our industry. that is a broad description of cars and consumer goods and food and fuel and chemicals. we expected to slog through until the third quarter of next year before we saw any chance of an uptick. melissa: what are customer's saying to you going forward. >> this is a problem in our industry with drivers, and we man hard time putting people behind the seats of commercial trusts. it is a tough job hard to fill. melissa: given people at the point that are looking for a new career you are having a hard

time finding drivers? >> it is a hard job, a lot of training has to go into it, a lot of scrutiny on safety and performers of drivers and it combines to be a job. doesn't look desirable to a lot of people. even with these unemployment numbers it is a problem for our industry. melissa: thanks for coming on. i learned a lot. lori: imagine seeing those cars. that was an amazing description. talk about the european sovereign debt crisis which continues to rage on. greece closer to getting more bailout money. lawmakers narrowly approving $17 billion of spending cuts and tax hikes. even more protests. people filled the streets of athens, the measure also threatens to deepen the country's devastating recession. the government says the cutbacks will lead to 4% ontraction next year and some economists say it could be worse than that.

greece's unemployment rate rose to 25.4% in august. we have high unemployment too below 8% so compare that to 25% in greece. meantime european central bank president mario draghi reiterated his concern about the dire situation in europe saying growth will remain weak and there are no signs of improvement going into the s&p. melissa: the make up in washington for the next four years remains pretty much the same but the future is anything but status quo. lori: that was interesting. looming budget cuts threaten defense companies but one analyst says it could be a winner in all of this. and investment for you. we get a call with oppenheimer a little later. let's look at the metals. so much talk about the markets and obama victory and ben bernanke staying in place and another day of gains for gold, $10.20, $17.24, silver and

copper high. we're back after this. [ male announcer ] this is steve. he loves risk. but whether he's climbing everest, scuba diving the great barrier reef with sharks, ojumping into the marke hgoes with people he trusts, which is why he trades with a company that doesn't nickel and dime him with hidden fees. so he can worry about other things, like what the market is doing and being ready, no matter what happens, which isn't rocket science. it's just common sense, from td ameritrade.

melissa: oil prices recovering from a sell-off. let gets to the action, phil flynn of the price futures group standing by. weak gasoline demand and impact. phil: it sure is. it is strange, we're talking all this demand destruction, they

are up in relationship to the helium oil market which a lot of this is concerned about ongoing refinery concerns. we saw a the 0 uptick in demand but the market is acting strange. yesterday traders were running around like chickens with their heads cut off and today they are afraid to make a move. the market has been fading back and forth and they seem to be looking at the stock market. the stock market continues to make new lows on the is indeed. when they make a new low oil traders come back a little bit but a lot of uncertainty, a nice break from all the volatility for some of these traders a lot of uncertainty about the next move. melissa: i see that reflecting a lot of equities. what is going on with natural gas? phil: we got the inventory report, the injection mobile stronger than anticipated because it was colder but next week will be a little warmer.

the big question is when you look at natural gas is there going to be more demand destruction on the east coast? will we lose a lot of power that may impact the man? add to the forecast for warmer temperatures in the midwest. we may see a reversal and that is why the market is barely moving on this number. melissa: thanks so much. lori: to commodities to the stock market. the session lows down 12,870, building on yesterday's losses. let's get to nicole petallides on the floor of the stock exchange. you are looking at earnings movers but what is the word on the floor in terms of expectations? are traders were reining in brisk levels? nicole: without doubt people expect more downside. until you find a pattern where you hold the base line you see accelerated selling as you break each support level and continue to the downside and that is what we are seeing on major averages. the dow jones industrials at

12,864. nowhere near 13,000. let's look at earnings movers. the whole network doing very well. the stock hit a 52 week high after they came out with their numbers. the walking dead which they have do is doing so well it is surpassing big bang theory and modern family. that is one of the reasons their numbers came in so great. they have the week channel, amc is doing very well. monster hit a new 52 week low. the numbers didn't meet and they face concerns about the safety of their drinks but they hold tight that their drinks are save, the energy drinks. melissa: financials leaving the market higher today. better news from j. p. morgan adding an upgrade for bank of america, a split decision when you look at the group and an otherwise very weak movement and depressing sentiment across the board. melissa: banks are shaking in

their boots because massachusetts's newest senator, elizabeth warren impact your portfolio. get ready for that one. you see us, at the start of the day. on the company phone list that's a few names longer. you see us bank on busier highways. on once empty fields. everyday you see all the ways all of us at us bank are helping grow our economy. lending more so companies and communities can expand, grow stronger and get back to work. everyday you see all of us serving you, around the country, around the corner. us bank.

melissa: 20 minutes past the hour. this is your fox news minute. going on right now gabrielle giffords's husband mark callie is speaking directly to jerrod laffner saying every day in her life is a struggle. the 24-year-old responsible for the shooting rampage that wounded the former congresswoman and a six debt and 13 wounded pled guilty under a plea agreement that guarantees him life in prison but spares him the death penalty. there are no cameras in that court room. attorney general eric holder is telling an audience of law students he doesn't know if he will stay for a second term. is white's speculation which cabinet members will remain at their post in the new obama administration. right here in new york governor

andrew cuomo says sandy's impact on state economy could be around $33 billion. that is a figure that includes lost economic revenue. he said the initial estimate of the region's devastation appears to be $50 billion and they are still getting a handle on that. i will send it back to lori. lori: a lot of devastating news today. so many leaders in washington remained in their positions. status quo has changed. democrats hold all the power. rich edson is in washington with more. rich: 2012 gave us the same basic power structure but president obama's reelection in democrats holding the senate has given them the power to influence major fiscal legislation, the health-care law is saying that on taxes all the president has to do is wait, allow tax rates to increase across the board and offered everyone a tax cut about wealthier taxpayers. senator patty murray floated at a few months ago and said i do

think the election was a mandate for a democratic agenda that focuses on the middle-class. for democrats that is tax increases on wealthier americans to pay for other spending. republicans say they're willing to deal with in reason. >> we need to be hung up on creating jobs and that is what republicans want to do. will we compromise on how to do that? yes we do. we will not compromise on the things that are about jobs, and job creation. rich: democrat and republican than dealing their opening positions. republicans say they will discuss increased tax revenue if it comes from an overall of the tax code. senior democratic leadership aide tells fox business democrats are drawing a line in this and yet. the aide says they want to get as much done as possible on debt and deficits. lori: the son of rep saying deal within reason. is there a new sense of bipartisanship going on?

rich: there is a new sense that republicans didn't capture the senate and the white house and they understand at some point they have to talk revenue. john boehner came to the podium yesterday and said the word revenue. they're going to have to get it. wears a going to come from the tax reform process? those details are far from it right now. melissa: might be an overshoot at this point. bank stocks coming from the sell-off by tuesday's election but which winner as the bank's more concerned? president obama or massachusetts -- there she is -- newly elected senator elizabeth warren. joining me is the tangent capital partners senior managing director. election day is a bad databanks. >> this delusion said romney would win and it would all be ok

and we would rollback basel iii -- melissa: a lot worse, not only is president obama in office which is not great for the banks but they're looking for the legislative change but you have people like elizabeth warren gaining power so altogether racemes what is your outlook? >> elizabeth ward is only one of 100 senators. she is an angry calvinist. she is a wonderful lady. i loved her books but i don't know her prescription for regulation is what we need right now. it reminds me of when sheila bair asked me about capital. my answer is no. we are delivering our financial system. the market is disappearing, doesn't exist anymore, $20 trillion of gray market financing outside the traditional banking industry. we need to be focused on this. that is how you get jobs. melissa: what does it mean from a practical point? bank stocks in a better position than others? would you avoid the group as a

whole? line up on it? >> if you go down a list wells fargo withdrawing from the mortgage market. save the last man standing. 40% market share. they will shrink. the rest of the banks not a lot of visibility on revenue or earnings. what happened with the election is the political come to jesus and everyone looked at the forward revenue and earnings estimates which are a little optimistic if you look at the street consensus and the two are not positive factors. 1.44times, full devalued so if anything i would expect a larger names to get back a little. this whole sector has run -- event preferred stocks that i like for the banks, income producing assets move 16 points since january. that is not normal. melissa: not like people stop banking or meet financial advice, there will be mortgages.

where they all fairly priced? >> attractively priced. city and bank of america are speculative deals below but nobody wants to go there. the key thing is they're going to barely be doing double-digit return on equity. when you factor that into the evaluation estimate, that is about right. melissa: anything change your mind? >> if we got a huge amount of investment banking revenue for morgan stanley, city, if housing suddenly came back, one reason the sell-off occurred is the street understands barack obama and the current cats in washington won't do anything about residential housing and what they're doing a negative. dodd-frank ripped the guts out of the nonbank mortgage origination sector. all we have left other banks. melissa: don't realize they are discouraging lending. >> in six months the congress is

going to hear such screens of unhappiness from realtors and everybody else in the housing industry in that they have to revisit these issues and forget about partisan at that point. even liz warren may have to reconsider -- [talking over each other] >> we will have some bar growth and you can expect multiples for large cap financials. melissa: thanks so much. save haven support of treasurys as investors worry about four more years of gridlock. how low can yields go? and look at today's winners and losers on the s&p 500. qualcomm trading higher. we will be right back. when we got married.

i had three kids. and she became the full time mother of three. it was soccer, and ballet, and cheerleading, and baseball. those years were crazy. so, as we go into this next phase, you know, a big part of it for us is that

there isn't anytng on the schedule. melissa: breaking news right now. take a look at the dow, sinking really losing steam, adding to yesterday's losses there. you can see down 95 points. let's go to nicole petallides on the floor of the new york stock exchange with more on this. nicole? >> that's right, melissa and lori. when you see a market that's been selling off and trying to find a bottom we continue to sell off. as i was talking to traders they were watching 1400 on the s&p yesterday, right? you're below that level. now we're sitting here at 181. traders say when you break 1380, you look at 1360 the next level of support. don't forget it was a 90 down day. when you see the big

selloffs people eventually buy them back, the question is when. this is how the market works. the majority of dow components are in the red but not like yesterday where all 30 were in the red and bank of america down 6%. cisco and mcdonald's down more than 2% each. as i noted markets sold off. all the major averages dropped more than 2% each yesterday. back to you. lori: clear move of assets. nicole, thank you so much. as the stock slide picks up steam, investors jump into the perceived security of u.s. government debt. look at the 10-year right now. people are piling in, pushing yield down to 1.62%. another six basis-point move to the downside. there were u.s. treasury auctions today as well. tremendous demand for that paper. this is the fixed income strategist for janney montgomery scott. nays to have you back with is guy. what do you see in this move? >> we're seeing a couple of

things. one that fed chairman ben bernanke will keep his seat and similarly dovish counterpart will keep his seat probably through 2018 or some that speaks low level of interest rates for some time. lori: do you think level of interest rates with obama? >> no, i don't think that is what it is about. bernanke chairmanship, hard to estimate the power of federal reserve on dovish mode with bernanke driven flood of cash into risk assets like stocks. lori: talk about the relatively low rates. boy, it crushes people dependent on fixed income as i'm sure you're well aware. retirees, people facing retirement. where should they put their money what are the best options in fixed right now? >> first thing i have to say there is no easy solutions. when we look at available set of options to investors there are kind of four options here. number one, stay in cash. you're locking in a negative return because of inflation. number two, go to inflation protected assets like tips.

their returns are low as well. number three, we call riding the central bank wave, buying same treasurys the fed is. that is not that productive in the long run. number four is the most inteeinging option not as appealing as year ago, buying risk assets, corporate bonds, municipal bonds and even on the margin dividend-paying stocks. lori: nervous with dividend-paying stocks with a likely dividend tax coming up, right. >> agreed. i said there are no easy solutions in this circumstance. very eye nokia in that respect. lori: what are you forecasting for 10-year yield? we'll use that as the benchmark. 1 and a half% i read this morning. >> that is little on the low side. in our calculations the recent rally is little overdone. we're expecting yields 12 months from now to be in area of 1.8% not all that higher than they are today. lori: meant to ask you about munies. they're doing nothing now, should you bail especially with the tax picture ahead. >> not at all.

munies benefit a lot of times for higher tax rates particularly for higher tax-exempt individuals and income they provide becomes more valuable as tax rates rise. there is the structure to tax exemption. in the short term that gives very much balanced out for higher tax rates benefiting munies over the course of the next year or so. >> round out with fiscal policy in focus. do you expect any interest rates going up on the longer end because of that? or do you expect a flatter yield curve to hold out for the near term? >> i think if you look historically at financial crises that have led to sovereign debt expansion, there are a number of them over the course of the last 100 years throughout the world, what we tend to see is that interest rates don't generally rise because of credit risk within a country. that tend to be very, very far down the road. so the potential for fiscal imbalance to lead to higher interest rates is really something that will be left to 2016 at the earliest, assuming congress and president are unable to tame the course of the deficit.

lori: at least one thing we don't have to worry about. guy, thanks so much. >> certainly a positive note. melissa: this is no bargains for credit list. new york attorney general eric schneiderman hitting them with subpoena demanding they identify users selling gas and supplies with jacked up prices. prices and price-gouging are widespread. one user selling a five gallon empty, empty gas container, for $500. others are offering full, five gallon cans for $120. what a bargain! so far the attorney general's office received over 600 complaints of price gouging on sandy everything from gas to hotels. over 100 craig's list users were targeted. he was on money with melissa francis last night at 5:00 p.m. talking about this. he was talking about price-gouging on bread at grocery stores, batteris. lori: disgusting. people can be so thoughtless. melissa: it was inevitable. lori: i have more confidence

in humankind. melissa: i don't. lori: like the rose tint off my glasses really. did president obama win the presidency or did mitt romney lose it? melissa: the future of the republican party following the 2012 election. lou dobbs is here to talk about all that. ♪ [ male announcer ] how do you trade?

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♪. >> i'm robert gray with your fox business brief. the post-election selloff on wall street continues for a second straight day. investors remain concerned over the looming fiscal cliff. right now the dow is off 75 points. a judge in argentina is freezing chevron's assets in that country. this follow as $19 billion judgment handed down in neighboring ecuador. the ecuador ruling awarded enormous sum to plaintiffs in environmental damage lawsuit. chevron officials say the judgment is a product of frayed. you may want to pack your patience if traveling this thanksgiving. airports will be busier, planes will be fuller and tickets will be more expensive. trade group, airlines for america, expects 24 million folks will fly from november 16th through the 27th. that is a 3% increase over last year. that is the latest from the fox business network, giving you the power to prosper.

melissa: so despite high unemployment, sluggish economic growth and ballooning deficit, president obama came out victorious on tuesday night. i didn't write this. seems a little, a little negative. another 4-year in office, forced shell-shocked republicans to rethink their message. who will be the new face of the party? lou dobbs is here with more on this. do you think we'll see a big change? >> i think you've already seen a change. you're hearing a bunch of wimpy republicans going around whining, and moaning about having lost an election. and they're talking about the message and they have got to give amnesty to illegal immigrants. they have got to, they have got to join president obama

and spending as much money as possible. melissa: well -- >> it is really great. except --. melissa: -- spend money. >> i wouldn't deny that in any way as long as it is your money. melissa: well, there is that. >> i think that is probably something fuddy-duddy and --. melissa: very old-fashioned of you. >> but i what i love about this, there is ap a parently a view by some in the republican party we should be a one party system. there shouldn't be debate about, oh, 16 trillion in debt. there shouldn't be a debate about consecutive trillion dollar deficits. or 23 million people unemployed. don't worry about that. we'll just gin up some more government money and programs. those --. lori: how do they regroup? >> how do they regroup? you know what they do? start being honest. first they have to be honest. what are the real issues that confront the country? and the fact is the fundamental issue that faces this country is are we going to have our lives dominated

by an ever-expandin ever-expanding -- government. melissa: yes, we are. we are. >> or, are we going to have a nation built on freedom, individual responsibility --. melissa: no, we're not. >> and opportunity. we are watching right now --. melissa: lou, bringing you the bad news. it is the first one. we're spending, and debt ridden. that's it. yep. yep. that's it. >> lasting answer. melissa: yep. >> well, that's it. you joined the one party? melissa: it is over. that is it. we voted for it. cradle to grave. entitlements. >> stuart varney in the morning he had a wonderful declaration this morning. said that he is going to fight on his broadcast to preserve our national values and the free enterprise system. and you know what? now we just need about the 60 to 70 million more voters to kind of line up on that attitude. melissa: well.

>> are you shell-shocked? melissa: no. i just think that the nation has spoken and we've turned into europe and -- >> the nation has spoken? here is what --. melissa: settle in and -- >> i'm hearing people say we needed more woman. needed more latinos. melissa: people like free stuff. they voted for free stuff. >> i get all that. i talked about it. i report it. that's fine. but the republican party is what the question was and the republican party needs to turn out more people who call themselves republicans. there were more independents and republicans registered this time and in fact everyone made it very clear statement. every broadcast and every news hout let, that there were more republicans than independents and therefore it was really important for romney to win the independents. they didn't even turn out the republicans. they didn't turn out the independents who had lowest showing for republicans since '92. lori: who do you think the

new face of the party is? marco rubio? >> i think that's a certainly --. lori: who do we look to now as our guide? >> marco rubio is one of the brightest, youngest stars in the republican party. if you ask me who will lead the party, that i think is one of the essential unknowns that is really going to per pecs the party because the party. that person is not really identified right now. mitch mcconnell leads the senate minority. john boehner leads the house majority but they're not leading the party. and -- i'm sorry. lori: will paul ryan have resurgence? >> that is interesting question. he lost his home state. governor romney and paul ryan lost his home state in wisconsin. they didn't do well there. he, to me it is a very open question as to what his role will be. it will be obviously have the opportunity to create a role and to define himself better but he sure going to have to be more than a one-trick pony. he has to learn to say

something besides budget. it is really important that he go beyond that in his, in his political persona. the, you know the republicans have got lots of smart folks but man those smart folks have to start thinking and they have got to start working. we have a lot of lazy republicans it looks to me like. and i'm talking about leading the party, and it in its various factions. we have lazy republicans when it comes to turning out to vote. that was the big deal. melissa: go vote. lou dobbs, thank you so much. see lou every day here at this time. >> isn't that exciting? melissa: 7:00 and 10:00 eastern tonight. catch former special counsel to bill clinton lanny davis. >> elections have consequence is. i'm talking to one of the leading democrats in the country about the very question that we raised here. what in the world lies ahead? melissa: there you go. lori: we do have breaking news here for you. direct your attention to the markets this is the dow losing steam here, session lows, down 82 points.

don't forget about yesterday's steep decline. clearly below the support of 13,000. we have new technicals coming in here. 12,848. most of the sectors are lower for a second straight day. to nicole petallides live on the floor of the new york stock exchange. she has more. >> i'm looking at market averages and nasdaq and s&p 500 down 1% each. that tacks on to yesterday's losses. it shows you the trend is to the downside. a couple of things to note and a little glimmer of hope whether or not the market is oversold. when you look at 90% down days like we saw yesterday, that by the way was our first 90% down day with volume since june. we don't normally see that. that indicates that the market could get a pop a of that, a tradable rally. we're waiting for that at this point. right now trying to find a bottom and hold steady in order to turn it around. selling is pretty broad-based. financials are making a go of it.

back to you. lori: nicole, thank you as always. melissa: so is black friday the new black thursday? thanksgiving day, holiday wars are starting even earlier this year, can you believe it. will you shop on thanksgiving? >> why not? doesn't have to be a holiday. lori: defense stocks, are you crazy? defense stocks -- well, for that reason, clearly. so we're now living in, be optimistic. melissa: i am. lori: defense stocks on the defense as budget cuts loom. something to be excited about. we'll join an analyst ahead. he still says there are buys. we have an investment strategist for aerospace and defense. you want to stick around for that. there are winners in otherwise down market. we're back after this.

lori: boeing is planning to restructure its defense, space and security business while cutting 30% of management jobs. this coming as we're less than two months away from massive automatic cuts to the defense budget. despite all of this, our next guest still says the aerospace giant is a buy. joining us on the telephone, the executive director and senior analyst for aerospace and defense electronics for oppenheimer. welcome to you. >> thank you. lori: when you look at the results ever the presidential election and talk about sequestration and alltic defense spending cuts that could very well go into effect you automatically assume when you hear bowing is doing the big restructuring that is what you attribute it to but that is the whole story? >> it is not. the sequestration is only part of the story.

u.s. and defense has been growing part of the budget the last 10 years. we're probably at the peak of that cycle. i think most people in washington or outside of it believe defense will come down the next decade, wlormt through sequestration or through some other means. if you look at boeing's plans, they appear to have been in place well before the presidential election, they realize, boeing did, even if it wasn't sequestration the overall pile they're going after would be smaller in the coming years. lori: is boeing having a tougher time than those other names? >> you're right. it is a bit of a laggard in terms of its profit performance. other companies like lockheed martin, northrop grumman, they too have been cutting expenses over recent years and doing more aggressive and their operating margins are often times 20, 30% higher than boeing. so i think there is a bit of a catch-up where boeing is trying to get closer to its peers in terms of profit performance. i think maybe part of the

story is that boeing has had other fish to fry. more than half of its business is in commercial aerospace building aircraft like the dreamliner and probably a lot of executive management are focused on making sure they get that part of it right. lori: there is tremendous demand for those 787s. you write they have been flying off the griddle but what is the wet blanket as you put isn't. >> i don't think there is a wet blanket when you look at the commercial side of things. boeing has a backlog at current rates could keep them busy for last seven years. orders continue flow in. lori: their expenses are through the roof. they have high pension expenses. you write that in your research. >> pension expenses come from interest rates are so low. if interest rates go back to closer anything than normal, five, six years from now, those pension liabilities will go out the window. core think to look at with boeing is cash generation and i think it will be doubling over next couple years. lori: one last comment i should buy shares of boeing?

>> yes. lori: thank you, sir. short and sweet. i'm a fan of that. melissa: retailers taking drastic steps this holiday season. let's get the latest on the shopping wars with sandra smith who has the story in today's trade. sandra. >> it will be a crazy retail season, devices because setting up to be a battle. look at wal-mart. they have already have their black friday sales on the website unbelievable as they announce they're opening doors at 8:00 p.m. on thanksgiving day. they have $148 lcd tv. an ipad 2, 16 gig bite, 399 bucks. $38 billion lg bly ray player. they're guaranteeing those three items if you get through their doors first thing thanksgiving night. wal-mart will be the leader in the competition as the stock this year is up 23%. a word of warning today, guys, buy coles, -- kohl's expect it to be highly

promotional holiday season. that means big sales could potentially cut into their profits. a little bit of a warning for retailers but they're ramping it up. lori: feels like shopping season. that is for sure. coming up are the safest sectors to invest now that the obama white house is sticking around? jack ablin from bmo private bank tells tracy and ash next. keep it here on fox business. capitalism lives here

>> don't fight the fed they say yet the markets are selling off. it is a whole different, in my view, set of expectations that is coming into play. melissa: yeah, yeah. lori: liz macdonald was talking about this. melissa: it's okay, it is europe. i woke up in europe. look, there is nothing wrong with europe. ashley: we're not greece, put it that way.

melissa: cradle to grave. it is lovely and it is fun. no, we just live in europe now. it is okay. tracy: still the greatest country in the whole wide world. >> it is. tracy: if it was europe we would be on siesta. melissa: see? take it away, guys. ashley: when you think about it, is there anything wrong with that. good afternoon, everybody, i'm ashley webster. tracy: i'm tracy byrnes. stocks hit session lows but they have come back a bit. dow is still down 43 points adding to yesterday's route. it has lost roughly half of the 2012 gains in the last five weeks. ashley: another wave of power outages in the northeast. will sandy and the northeast put the lights out on vacation spending in the country's most pop youlous region. tracy: plus more trouble ahead for tech. one venture-capitalist says m&a and the ipo market will not bounce back anytime soon. ashley: no. look after yesterday's big

selloff we're still off 45 points on the dow. off the session lows. time for look at stocks as we do every 15 minutes. nicole british petroleum on the floor of the nyse. >> ashley, tracy, we see selling on wall street. we saw the s&p 500 yesterday with a drop of over 33 points was the largest point drop this year. much like what we saw with the dow jones industrials. we have seen accelerated selling. today, we're not really doing much better. i mean there were hopes that maybe we would bounce back today. we're not seeing that. a majority of the dow components have come under pressure. it doesn't help when you have big conglomerates, big worldwide companies like mcdonald's coming out with same-store sales that are a pure disappointment, the worst in nine years. what we're seeing right now in the dow jones industrials down 45 points. while we improved some we still have down arrows. traders are trying to find a base. have a level that they can trade on.

and then that is when you start to work and turn around a market that has been selling off. i know you will focus on the financials. that is one area doing a lot better than yesterday. back to you. ashley: nicole, thanks so much. tracy: based on what happened yesterday, the banking sector got wallopped. showed concern over president obama's re-election big-time yesterday. banks are look better today. how will the continuation of the dodd-frank legislation impact the industry? peter barnes on the story in d.c. peter, stocks got walloped yesterday. >> that's right, tracy. governor romney as you call, waated to replace and repeal dodd-frank financial reform legislation, one of the president's measures after the financial crisis. well, that is not going to happen now. the analysts say the president's victory will embolden the consumer financial protection bureau to get tougher on banks with new enforcement. secondly, regulators are expected to move forward with higher capital rules

for big banks which face a greater risk of breakup. that is in part because of the election of their arch foe, consumer advocate, elizabeth warren, to the senate on tuesday night. she is expected to help defend dodd-frank and other existing regulation from republican attack as well as push new limits on banks. >> you took on the powerful wall street banks and special interests and you let them know you want a senator who will be out there fighting for the middle class all of the time. [cheers and applause] >> some analysts believe that warren and other democrats could join forces with conservative republicans who charge that dodd-frank protects big banks from being too-big-to-fail by guaranteeing them government funding and support in any future financial crisis. tracy? tracy: peter barnes. they will not feel that way when their atm fees are 10 puck as pop. we'll see.

peter, thank you very much. >> okay, thanks. ashley: while the s&p 500 may be down just 5% from its highest close this year nearly half of the companies that make up the index, well they're down at least 10% from their recent highs. so could the market be weaker than it looks? joining me now is jack ablin, chief investment officer with bmo harris private bank. jack, thank you. let's begin right there. so, look, nearly half of the s&p index, these are not some smaller names. some big names. microsoft, apple, google. off 10% from highs. what is your take on that? >> yeah, i mean, i think watching the technicals or at least what we would call the internals is an important point, especially now, given that we got close to, what i would call full value, fair value at 1450. and it seems like we just can't sustain that. but, you know, broader, if you just look at the fundamentals and valuation, i would say that there is still some decent support for stocks.

ashley: would you say though that the market right now oversold for the first time since back in june as some economists are saying right now? >> yeah. i think that, at least what we saw yesterday and a little bit today, is part of what i will call a kind of a reset, given now that we have a landscape out there. we've got, you know, the cards are dealt and now investors are busy trying to figure out how to best play their hand, i think that it is just creating in some respects, kind of a one-time shift as investors are moving away from, for example, you know, financials and energy because of the regulatory environment possibly telecom because of dividends. so i think there needs to be some adjustment. i don't think this is necessarily the breakdown that causes, you know, a bear market or anything like that. ashley: you say that the tech sector is the best one to positioned the best if you like under the obama

administration. what is your reasoning on that? >> sure, if you look at the 10 economic sector groups, technology is probably best positioned under this new environment because, technology shares, technology companies, typically aren't very heavily regulated. so we don't expect any new increased regulation on tech shares. and among the 10 economic sector groups, technology companies have the lowest dividend yields. so that any increase in the dividend tax will impair them less than their couper parts. i think the only area where we could see tech companies stung would be if president obama's plan to tax foreign profits comes back to haunt the group because keep in mind, companies like microsoft and apple pay on average six or 7% in taxes. not 35 that the corporate tax rate is, largely due to the foreign posts. we'll have to see if president obama's going to go after those foreign

profits. ashley: talking about dividend tax, what about muni bond? is that a good way to play that segment of the market? >> we think so. if tax, if tax rates are going up and the tax rates appear to be going up to the 36 or 39.6, then municipal bonds, those that offer tax exemption will be incrementally better. we are a little worried about the, the build america bond program expanding. build america bonds was a federal program that enables municipalities to issue taxable bonds and then be compensated for the difference from the federal government. it's possible the feds could expand that program and then eliminate the tax exemption all together. but i don't see that happening in the next couple years, anytime or anytime soon. ashley: great information. thank you so much. jack ablin with harris private bank. thanks for joining us. we do have some breaking

news for you. fox news now has confirmed that iran has fired at a u.s. drone. that confirmation coming from the pentagon. we'll bring you the very latest on this story as it develops. tracy: all right. well there is much more to cover this hour including rising talk about a recession again. liz macdonald reports on the sudden spike in the economists using the "r" word next. ashley: snow. you have putting a wet blanket for any hopes of economic improvement in the northeast. weather intelligence firm, planalytics will tell us about the companies being hard hit. my word, what kind of a winter will we face? as we do at this time every day look how oil is trading. it is up 3/4 of a percent, just up over $85 a barrel. we'll be right back

tracy: we have breaking news. we have more details from the pentagon. now iran fired on a u.s. predator drone back on november 1st. this again according to pentagon spokesman george little. now the drone was an international airspace and we will of course continue to bring you more as the story develops but it happened back on november 1st, not today. ashley: very good. more economists are coming around to the idea that the u.s. economy is already in recession. reports making the round on

wall street trading desks certainly indicate just that. with more on what they're seeing is liz macdonald with emac's bottom line. what are they hearing? >> you know what they're talking about? i got the run-down from my guys down on wall street. they're noticing that just four out of 10 companies, guys, in the s&p, fought out of 10 reported are beating sales estimates that is not good. they're seeing s&p earnings are down year to year fraction alley. they're not liking that. they're talking about new data reports out of the st. louis federal reserve bank talking about recession indicator pointing toward preliminary data showing possible recession right around the corner. if not, we may be in one right now just in the fourth quarter. could spill over into the first quarter. then they're also talking about six out of 10 oecd countries in europe are essentially in recession. so but the one data point they're watching are the number of companies that are cutting back on their dividend to hoard capital

that is on the rise. look at this here. you will see s&p has also said look, this might be a dividend, basically a recession indication the tore. number of u.s. companies cutting dividends rising. look at the timeline back in 2009. you saw a spike in number of companies cutting their dividends. that is the reason we're in recession. that is recession indicator. you see to the far right, u.s. economy possibly entering into recession. we see a number of companies cutting dividend again rising. they go from aviv is a to best buy, to bank of montreal, on and on. tracy: could that be because of the tax increase? >> all-in tax hike is 43% with the tax reform hikes. if you see list of companies and we're showing them on the screen, we haven't seen this number of companies cutting their dividends we've seen in record numbers. possibly, yes, tax increases. why pay out a dividend if taxes go up. capital hoarding is the name of the game.

ashley: recession if you want to be clear about it, two consecutive quarters of negative gdp growth. >> that is one way to look at it. ashley: if you dig down in there there are many other not so obvious indicators. >> i will tell you something. the arbiters who gets to call it, national bureau economic research, averaging 11 months down the road after recession has ended that's what we call it. we may be in recovery by the time they call recession. charlie brady, senior editor at fox business, 227 stocks in s&p 500 were in correction mode. apple, google, microsoft. that is some of the data points they're looking at to say are we in negative territory right now? poor gdp. ashley: certainly a lot to ponder. emac, thank you so much. >> sure. ashley: appreciate it. tracy: it is quarter after. as we do every 15 minutes we check on the markets. nicole petallides on the floor of the new york stock exchange. dow down 51 points. it crawled up a little bit. mcdonald's down.

is that part of the reason pulling the market down? >> one of the many reasons. you were waiting for the good feeling to come back here on wall street since the election took place. you have a lot of long faces. you have a lot of selling underway. you have a test of support levels. you heard emac, liz macdonald talking about stocks in correction mode. then you get a report from mcdonald's, a global company like this one, just talking about its first monthly drop in same-store sales in nine years. it wasn't one area. it was in the u.s. it was in europe. it was in asia. it was in africa, it was in the middle east. so the selling it is a global story as well. not just here in the states. really is a soft economy across the world. and they worked very hard to try to beef up that dollar menu. make things attractive and cheap and they continue to do so. this latest report from mcdonald's, not a good one. back to you. tracy: no doubt at all. unless people are upgrading, saying i'm done with a whopper, i'm going, where am i going? applebee's?

john. ashley: a bit of a stretch. tracy: i'm trying. we have thousands of people in new york and new jersey still without power again after the massive storm yesterday! thousands just never got it back from hurricane sandy. what is in store for the rest of the winter it? how will this impact the economy? that's next next. ashley: i don't know if i want to know. look at do are lar -- dollar. ecb holding key interest rate. and u.s. dropping against -- most currencies dropping against the dollar except for the japanese yen. we'll be right back.

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>> 20 one minutes past the hour. i'm jim my colby with your fox news minute. we have breaking news this hour. a pentagon official is confirming that a iranian aircraft fired on a u.s. predator drone 16 miles off iran's coast november 1st. it was unarmed, unmanned drone carrying out routine surveillance of maritime straits. breaking this hour, a judge sentencing jared loughner to life in prison. he was responsible for the shooting rampage that

wounded congresswoman gabby gifford and left six others dead. gifford's husband spoke directly to loughner in court. he said his wife would trade hers to bring back those that were tragically murdered. eric holder is not sure he will remain attorney general for a second term. there is widespread speculation who we rhine main on their posts because historically most cabinet officials don't stay for two full terms. i'm jamie colby. we'll send it back to ashley and jamie. ashley: appreciate it, jamie. certainly the last thing the east coast needed after superstorm sandy. that nor'easter packed a punch. over 92,000 dmers lost power from yesterday's storm bringing the current total to over 700,000. massachusetts had the highest recorded wind gusts. 10 fema offices in hard hit

staten island were forced to suspend operations because of the weather. for more on how the nor'easter has impacted the cleanup from sandy and the double-whammy we've had we go to fox news's rick leventhal in staten island, new york. rick? >> the storm definitely adding insult to injury, this block didn't have power and still doesn't have power. they have a lot of debris. the city clearing 130,000 tons of garbage and debris from city streets so far. there is lot left to be picked up as you can see behind me. this neighborhood is a mile and a half from the ocean and took water over our heads. 12 feet of water flooded every single house. all the basements were full of water. the water came up to two to three feet high on the first floor. we're walking into lloyd dennis's home. he has been busy trying to rip out drywall and flooring to try to preserve what he can of his home. he lost pretty much everything because of this storm. you see him ripping up a floorboard now. this is the kind of debris

they're having to pick up. not just floors but, watching machines and dish washers. can we talk to you a second. i hate to interrupt you. >> sure. >> you were home when this storm hit and started filling your house with water. >> correct. i was home. >> how frightening was that. >> it was rough. like i said, my family all got nervous and trying to get out at the same time. by the time we thought about it, the water was up, if you look at the pole outside, above the stars. no way of getting out. >> thank you, lloyd. good luck to you. we talked to one of his neighbors who actually escaped on a canoe, a canoe came to their door and, down, and took them down the block, to dry land and, that is how they rode out the storm, guys. tracy: rick, just to confirm. the fema office is actually closed because of the weather? the place you're supposed to go for help shut down because of the weather? >> yeah. many cases they were in temporary tents, or motor

homes parked in parking lots. they just felt it wasn't safe enough to say. yeah they had to shut down operations and get out before the storm arrived. ashley: fox's rick leventhal. thank you so much for the very latest on staten island. appreciate it. tracy: rick, stay safe. joining us now with the impact these storms will have on the economy and what we have in store for the rest of the winter, i don't even want to hear it, the president of planalytics. thanks for dealing with us. that is the question everybody wants to know. is this going to keep going? >> that's right, tracy, you don't want to hear it, you're absolutely right. ashley: scott, thank you for joining us. >> all right. and i don't blame you, tracy. i don't blame you at all because, this is a very easy forecast in that winter is coming. winter will come to the new york region. i can't change that, right? winter will come and we've had a, you know, last winter was a relatively mild one for the new york region. it will just not repeat. we'll have a winter in new

york and, especially the new york region, right? when was the last time, can you remember the last time a hurricane hit a region within 10-day as snowstorm? i can't. i'm in this business and i can't remember the last time that happened. people are just getting very weather-weary. they're sick and tired of the weather and here comes winter. maybe not this weekend or next weekend but here it comes. ashley: scott, what impact are we looking at on businesses? >> there is some good news and bad news, right? right now in a lot of the region we're starting to sell prechristmas. people are outside of the storm areas are feeling little bit cold knowing that christmas is coming. that will change this upcoming weekend. that is usally pretty good. right before black friday if we get a little bit of cold blast to get people thinking about christmas. that said there will be traffic limiting events that happen across the midwest and the northern tier, if you will, that will keep a lot of people out of the stores which is a little bit of a problem. it will be a real roller

coaster ride as we go from here through the holiday season. tracy: there will be a lot of displacement buying. someone like myself, has to think, maybe i shouldn't take vacation in february? maybe i should hunker down and buy a generator because this might happen again sometime soon. we'll see some industries actually getting hurt, some being helped. >> that is exactly right. that is exactly right, tracy. a lot of people who are affected can not have happy a christmas underneath the tree they might otherwise have had. when you look at surrounding region, it impacted a such a large swath of the population will make them rethink, do i go for glitzy electronic toy or jewelry or something for the home or something that keeps my house a little safer? a lot of people will come down buying a generator just like you. tracy: yeah, big-time. scott, we were kidding. you most certainly have to come back. next time say it will be sunny the next five years or something. lie to me. it is okay.

scott bernhardt, president of plan at this time -- planalytics. telling us the truth, winter is a --. tracy: began a week ago. ashley: should president obama call on president clinton to break the deadlock? that is what some people are calling for. gerri willis on the story next. tracy: let's look at some winners and losers on the s&p 500 as we head out to break. look at qualcomm up almost 5%. dean foods too. 3 1/2%. we'll be right back.

lori: let's check the markets. nicole petallides still on the floor of the stock exchange, the dow flipping a little bit. nicole: today is not yesterday. yesterday was accelerated selling on heavy volume. all 30 dow components lower. the dow is down 300 points. major average dropped that they hadn't seen in over a year. the selling yesterday was very clear cut. today is an area where we are trying to set it up a little bit. a lot of names continue to sell off. the dow jones industrial, a third of them have a arrows. i don't want to be the gloom and doom reporter. let's look at these names. don't forget bank of america yesterday was down 6%. got to give something back. bank of america, j. p. morgan -- jpmorgan, travelers, we have seen the insurers hit hard or too reasons, hurricane sandy and the current administration's

policies. that is another name taking it back. boeing hit hard yesterday too in china making all of that. lori: we are seeing some too. cu in 15 minutes. ashley: the queen of boom. more on breaking news on iran. iran fired on a u.s. predator drone on november 1st. rich edson in washington with more on this developing story. peter: two iranian aircraft fire on an unarmed u.s. predator grown flying 16 nautical miles off the coast of kuwait international waters. white house has no comment and instead referring as to the >> on november 1st, at 4:50 a.m. eastern daylight time, and unarmed, and main u.s. military aircraft conducting routine surveillance over the arabian

gulf was intercepted by iranian as you 25 fraud foot aircraft and was fired upon with guns. rich: the routine surveillance was of maritime straits. the pentagon says the iranians missed the drone and the u.s. has protested to the iranian government. ashley: rich edson with the latest on that story. thank you very much. tracy: we will have more as the story develops but here's more breaking news. oil closing $0.65 at $85.09 a barrel. it is a gain of 3/4%. we will feel that at the pump. we always do. can former president bill clinton held broker a budget deal between republicans and democrats? this is a suggestion that is on the table as the nation faces a looming fiscal coin. here to break it down, gerri willis. ashley: everyone is saying that. tracy: point times call for

desperate measures. >> we saw a report in the christian science monitor. is not being reported elsewhere but what is being reported is the possibility hillary clinton might run for president in 2016. you do the math. why would bill clinton get in the middle of the nastiest fight we have seen in our political history of the last four years? he wants to help -- ashley: clinton came up with a pretty well compromise spending plan in 1997. does have that ability to reach across the aisle with you like him or not. and that is what washington desperately needs. your opinion, an option that is worthwhile? liz: i don't have an opinion. what is important is what can get the job done. despite what you were saying in the break that everybody loves some that is not true in the house. not sure they would be willing to accept the former president. i could be wrong.

it is like a bad divorce. tracy: the two sides are not talking. liz: we had a president make phone calls, john boehner said he is willing to talk can't put taxes on the table. the pens on what he said. it is a report out there that someone is floating a trial balloon but what i noticed in the story recently, there are a ton of former bill clinton advisers being reported in the media. something is up. [talking over each other] ashley: something has got to be done. the fiscal cliff as fast approaching. we can say it enough because it is reality. >> liz macdonald is reporting we're in recession already but recession of 1.3 to 1.6% if we go over the fiscal cliff and two million people lose jobs. you do the math.

>> coming up tonight? gerri: i thought the election is over and the lot of ceos, once we get some answers about where the country is headed we will think about expanding and adding people. we have some ceos to ask that question, are you changing your ears? because we have somebody in the white house for another four years. ashley: a clearer picture. don't forget the report at 6:00 eastern time on the fox business network. thank you. tracy: i will be curious to see if they will hire part-timers. coming of a major win for samsung and the smart phone war with apple. we have details next. ashley: apple stock heading lower. let's take a look at those ten year treasuries. the ten year yield falling 10.6% down five basis points. the price going up.

also coming down the yield that six basis points at 2.77%. we will be right back.

lori: i am lori rothman. the selloff on wall street continues for the second straight day. investors are concerned about the looming fiscal cliff. the dow is down 76 points. the trade deficit narrowed in september to the smallest imbalance since december of

2010. the deficit dropped to $45 billion as exports rose to record high. analysts expect the trade gap would widen. they will replace the boeing 777 with the newer models 777 x meeting the airline's needs. the announcement by the airline's president may put pressure on the aircraftmaker to speed up production of the upgrade. the plain has not been offered for sale. that is the latest let's get business from the fox business network giving you the power to prosper.

ashley: samsung's galaxy s 3 the world's best selling smart phone, sales dethroned apple's on iphone which dominated the market for two years. strategy analyst custom-made samsung sold eighteen million

models in the third quarter compared with the i phone 4 x sales of just over sixty million, strong sales of the flagship galaxy x 3 which comes with a large 4.8 sunscreen helping post a $7.3 billion operating profit in july-september quarter while the s3 has proven to be popular internationally and forecasted the new i phone 5 which will reclaim the top spot for apple in the current quarter. apple may needed. shares of the tech giant taking the hit trading 20% below the september high for the second straight day. shares of apple are down again almost $16 and $542.02 a share. a tough go. tracy: is like putting a notebook in your back pocket. it is huge. ashley: they have done well. tracy: at apple -- we week after a stellar by, volt wall street reporting earnings after the

bell. what should we expect from the world's largest entertainment company? dennis kneale has it all. what is going on? they doing all right? dennis: is the mouth going to roar? wall street looking at revenue growth of 5% to nearly $11 billion for the quarter with net income rising 11% in earnings and earnings per share up a better 15%. they had a great run in the past year almost 50% rise in the stock price and that those in part to an obsessive focus of attention to detail and lean operation but also the mouse house of the richest portfolios of movie franchises. disney agreed to pay $4 billion for another one, the star wars empire of george lucas. they will release the three new star wars installments in 2015. that deal adding darth vader and lou skywalker to the avengers and marvel universe, one of the biggest grossing of the year and the disney picks are laudable of

woody and bose lightyear and cars, perfect synergy vehicles for movies and spinoffs and theme park rises and video games and toy tie-ins wall street could be watching had sales at espn and the abc network for clues to the economy and how business is feeling. advertising, first thing they turn down in a slumping economy and disney's theme parks give him whether consumers are in the mood to be spending more, a trip to disney world could be pricey as you know at disney theme parks have been doing well during the recession that supposedly ended in june of 2009. tracy: you wonder people keep up, the storm and, i am wondering if i will take my family on vacation or potentially to buy a generator and prepare for the next one. >> it might have heard their broadway receipts, broadway, at disney world, the most important

theme park likely was scared the impact of sandy. tracy: we will be watching. we both know how expensive disney is. keep it right here on fox business for complete coverage of disney's earnings and results from groupon and nordstrom and lion's gate with after the bell. ashley: big companies reporting. time for stocks as we do every 15 minutes. let's head to nicole petallides. we will talk about the financial. after all the big banks, j. p. morgan up today. nicole: j. p. morgan jpmorgan has its own story resuming a $3 billion stock buyback in the first quarter, came out with quarterly filing, the agreement in principle, they handled more mortgage securities that will package, making it through that and give you an outlook, the

first part of jpmorgan. and names like banc of america, goldman sachs lower. and it is 4%. and post-it notes, and you are not seeing the heavy selling like you did yesterday but still down 71 points. ashley: thanks very much. tracy: after high-profile flops like facebook and the leading venture capitalist, with us next. ashley: and winners and losers up again today, but the we have some winners out there has tracy mentioned qualcomm up 5%. it is the 0.3%.

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ashley: breaking news updating you on the story this hour, firing on u.s. predator drone on november 1st, one week ago today according to the pentagon. it did not hit the ground, it happened about 16 nautical miles off the coast of the ran above the arabian sea. the pentagon saying the unmanned unarmed brown was conducting

surveillance of maritime strength in the air and the drone was not hit but did come under fire and they say was an international air space at the time this happened. those are the latest details we have. better gobble up the thanksgiving dinner quick because black friday coming early this year. walmart announcing it will kick off its holiday sales rush at 8:00 p.m. thanksgiving day, the earliest start ever. the world's largest retailer by ahead of the holiday? sandra smith has today's -- sandra: not liking this. tracy: just when i'm down. [talking over each other] >> open the doors at 8:00 and i thought you might fancy this. here is walmart's website showing you one our stock in stock guarantee. they are opening their doors at 8:00 but from 10:00 to 11:00 the guaranteed three items, and ipad

2 for $3.99. for $148 a 32 inch lcd emerson tv and a $38 bluray player. there are reasons to get people through the door. they always do. [talking over each other] >> buy walmart stock, putting your portfolio ahead of this holiday and down a little bit today but of 22% year to date. they will go above $80 a share and if we had 2 seconds left, put this up against amazon.com for two seconds. amazon put out a note basically saying they do not see walmart announce next day shipping as a threat to amazon. no sweat and no problem by the both of them. they like a mall. will be a better holiday year. [talking over each other] tracy: better for my jeans the next day to buy the ipad or whatever it is.

[talking over each other] tracy: 60% of technology companies have missed third quarter sales expectations. this includes bellwether companies like google, microsoft, oracle and ibm and our next guest says poor earnings order spells trouble for tech and they. joining us now, larry king, founder and managing partner at bullish in capital down from boston. glad you are here. what does this mean? apple down 20%. microsoft down 12% from a time. does that mean the demand is not there. >> the entire supply chain has contracted and it is hurting everyone, the semiconductors, everyone. tracy: now one wondering recession often times you hear an analyst save by consumer staples and tech because it is an armed. you are not saying so much. >> at a large cap and madcaps levels they had a tough quarter. it is the toughest quarter since 2008 crash but the youngest companies are coming up showing

good growth and performing better. tracy: next step is to go public. but we have seen facebook get clobbered in the ipo market. what happened? >> those are bellwether big names that had a tough time but underneath there are smaller companies less known that of don well like guide wire software but they perform pretty well in the aftermarket. tracy: is it getting better? at 2010 levels in the ideal market now. >> it is very tepid. if you are thinking of going public, your stock gets crushed and you are looking forward and say a lot of economic uncertainty so it feels very risky. tracy: you have regulation around a financial market to be concerned about and tax issues down the pike as well. >> rise in income taxes, rising interest taxes, corporate income taxes, all of that needs to be resolved. tracy: what happens? what everyone is hoping will pull us out of this malaise we

are in. >> enttepreneurs could care less what is happening in washington. they will start businesses and a lot of innovation going on. that will be a stable. tracy: what is the next big thing? >> everything mobile. managing mobile computing and enterprise, everything related to the mole supply chain is growing, everyone's access to content to mobile phones. the computing industry is shrinking the t mobile side is gaining. tracy: will we see an end a activity? >> we will see a lot of them and they acted because the companies can't innovate so they have to buy better product. tracy: that is good for little guys to get bought up instead. >> a big chunk of them will absolutely. tracy: glad you got here safely. down from boston. ashley: qualcomm having a great day, earnings beating expectations and forecast also better than expected. the company writing growth in mobile devices will profit. coming up liz claman talks to

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liz: good afternoon everybody. i'm liz claman. it is the last hour of trading. this is countdown to the closing bell. we're begin right now. the dow and s&p having the biggest two day drop of the entire year. dow is down more than 96 points at the session low. right now down 53. the index started the day higher before falling at about 10:45 in the morning. right now as you can see, we still have some losses and on your screen, here's the bigger picture glance at the dow 30. yes, bank of america, travellers, boeing, amex wal-mart all looking good, but it is mcdonald's, cisco, verizon caterpillar and con